How does Bitcoin gain value?

[emma.lee1890]

In theory, it seems hard to see why Bitcoin can have any value. But the truth is, how does a US dollar have any value as well? The answer lies in the usage of the currency. If many people are using the Dollar to exchange items, then it has some value and it becomes a currency. Bitcoin or any other Cryptocurrency works in the same way. If any group of people come together and say that they will use Bitcoin for transactions, then Bitcoin gains some value. The more Bitcoin is used, the more value that Bitcoin gets. It is very similar to demand vs cost. The higher the demand, the more the price and vice versa. The demand for Bitcoin is created because it was a pioneer in Cryptocurrency, which brought it many advantages over Fiat Currencies(Currencies issued by the central government).
Not only is demand very important, some other factors lie in the growth of other Cryptocurrencies as well as the legal matters concerning Bitcoin.